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1) Economics of Constitutional Change in Scotland

Summary of the impact

University of Aberdeen research into financial and economic relations between Westminster and Scotland has informed public debate concerning Scottish Constitutional Change and influenced Scottish and UK policy makers in light of Devolution in 1999 and the Independence Referendum in 2014.

Impact emerged through two main channels: First, through UK Continental Shelf (UKCS) research investigating the nature and extent of shares of investment, production, gross revenues and UK treasury tax revenues attributable to an independent Scottish parliament. Second, through accurate research information about the Barnett formula's post-devolution role in fiscal transfers between Westminster and Scotland.

Submitting Institution

University of Aberdeen

Unit of Assessment

Economics and Econometrics

Summary Impact Type

Political

Research Subject Area(s)

Economics: Applied Economics
Studies In Human Society: Policy and Administration, Political Science

Fiscal Inefficiencies in Federal Economies

Summary of the impact

Research carried out at the University of Exeter Business School (UoEBS) into the design of fiscally decentralized institutions has been instrumental in bringing `vertical fiscal externalities' (an inherent feature of multi-level governments), and the resulting inefficiencies, to the attention of international organizations including the International Monetary Fund (IMF), the World Bank, the Organisation for Economic Co-operation and Development (OECD) and governments worldwide. This work has informed policy decisions and provided awareness of the intrinsic issues and interdependencies between tax decisions at different levels of government through the production of significant theoretical, empirical, and policy literature, and has directly influenced taxation policy directly through changes in fiscal legislation in Germany.

Submitting Institution

University of Exeter

Unit of Assessment

Economics and Econometrics

Summary Impact Type

Economic

Research Subject Area(s)

Economics: Applied Economics
Studies In Human Society: Policy and Administration, Sociology

Improving tax design

Summary of the impact

Research at LSE by Henrik Kleven and colleagues has significantly improved the design of tax policy and tax enforcement in countries as different as Pakistan and Denmark. These policy impacts can be summarised as follows:

  1. A project by Kleven and Waseem (2013, Quarterly Journal of Economics) became the blueprint for a major income tax reform in Pakistan in July 2012.
  2. A project by Kleven and colleagues (2009, Econometrica) led to reform of the tax treatment of married couples in Denmark in 2010.
  3. A project by Kleven and colleagues (2011, Econometrica) led to a significant change in the enforcement of capital gains taxation in Denmark in 2010.

Submitting Institution

London School of Economics & Political Science

Unit of Assessment

Economics and Econometrics

Summary Impact Type

Economic

Research Subject Area(s)

Economics: Applied Economics
Commerce, Management, Tourism and Services: Accounting, Auditing and Accountability

Tax Policies towards Charities and the Financial Sector

Summary of the impact

Professors Kimberley Scharf and Benjamin Lockwood have influenced public and policy debate leading to tax policy changes in the UK and EU. Scharf estimated the impact of proposed reforms to the UK Gift Aid program, research that improved public understanding, led to the creation of an open discussion forum for affected parties, and shaped NGO/charity campaigns. Lockwood estimated the tax effects of removing VAT exemption from firms offering financial services in the EU. The methods developed were adopted by EU analysts and underpinned EU estimates of the tax advantages enjoyed by the sector, leading to the 2011-12 imposition of a Financial Transactions Tax within 11 EU member states from 2014.

Submitting Institution

University of Warwick

Unit of Assessment

Economics and Econometrics

Summary Impact Type

Economic

Research Subject Area(s)

Economics: Applied Economics
Commerce, Management, Tourism and Services: Accounting, Auditing and Accountability
Studies In Human Society: Policy and Administration

The Modernisation of Gambling Taxes

Summary of the impact

Vaughan Williams demonstrated the benefits to consumers, betting operators and government of switching from a tax regime based on turnover to a gross profits tax (GPT). Applied initially by the UK Government to general betting (i.e. through bookmakers) and then to bingo and pools betting, GPT was extended in 2013 to gaming machines through a new machine games duty. HM Revenue and Customs used Vaughan Williams' elasticity estimates in setting the rate of machine games duty and to successfully challenge regulatory discrepancies relating to gaming machines and stake limits. Since 2011 other European countries have followed the UK's lead and switched to gambling taxation based on GPT.

Submitting Institution

Nottingham Trent University

Unit of Assessment

Business and Management Studies

Summary Impact Type

Economic

Research Subject Area(s)

Economics: Applied Economics
Commerce, Management, Tourism and Services: Banking, Finance and Investment
Studies In Human Society: Policy and Administration

Influencing Tax Policy in Europe

Summary of the impact

Since it was established in 2005, the Oxford University Centre for Business Taxation (CBT) has had significant and wide-ranging impact on several aspects of the formation of tax policy in Europe. Feeding into the current topical public debate on business taxation, the centre's research on the design and effects of corporation tax and VAT has had impact in several ways, two of which are highlighted here: 1) on a proposal by the European Commission, and the response by member states, to harmonise corporation tax within the EU, in which the research has been partly responsible for the reform not being implemented; and 2) on a far-reaching reform to VAT in Portugal, where the research contributed significantly to the design of the revised VAT system.

Submitting Institution

University of Oxford

Unit of Assessment

Business and Management Studies

Summary Impact Type

Economic

Research Subject Area(s)

Economics: Applied Economics
Law and Legal Studies: Law

Informing the Government, Parliament and the Public about Tax Avoidance

Summary of the impact

Professor Prem Sikka has become widely known in finance circles for his research on the `dark side' of the finance industry. His research on tax avoidance in particular has established him as an expert on the mechanisms by which companies find legal loopholes to avoid tax. As a result he has been asked to use his research to inform policy discussion in three main ways: by consulting with the UK Government's Secretary of State for Business Innovation and Skills; by informing politicians and parliamentary committees in Westminster, Scotland, and France; and by acting as a senior adviser to a number of NGOs concerned with the tax conduct of global corporations. In recognition of his contributions to public discourse he has been named by specialist publication Accountancy Age as one of the 50 most influential figures in UK finance.

Submitting Institution

University of Essex

Unit of Assessment

Business and Management Studies

Summary Impact Type

Economic

Research Subject Area(s)

Commerce, Management, Tourism and Services: Accounting, Auditing and Accountability, Banking, Finance and Investment
Law and Legal Studies: Law

The Design of Tax Policy for Economic Recovery and Growth

Summary of the impact

This case study describes how an economic and statistical analysis of tax policy undertaken by Chris Heady has been used to inform fiscal policy decisions, both in the UK and overseas.

The research has had a direct impact on public policy, informing HM Treasury's decision in 2011 to increase the main rate of value added tax and accelerate the reduction in the rate of corporation tax. It has also had a broader impact through contributing to the government's understanding of the role of tax policy in promoting growth, and through informing public understanding of the issue.

In addition to its significance to UK public policy, the research has had international reach as it has been presented for discussion by the international tax community and international organisations.

Submitting Institution

University of Kent

Unit of Assessment

Economics and Econometrics

Summary Impact Type

Economic

Research Subject Area(s)

Economics: Applied Economics
Studies In Human Society: Policy and Administration

Informing the Economic and Financial elements of the Scotland Act (2012)

Summary of the impact

The recommendations of the `Calman Commission' on Scottish Devolution resulted in the largest transfer of financial powers from Westminster since the creation of the United Kingdom, implemented in the Scotland Bill which received Royal Assent in 2012. The independent expert group chaired by Professor Anton Muscatelli were directly influenced by University of Glasgow research on the lack of accountability in the UK devolved system, the potential to extend the use of income taxation as a devolved tax, and the problems in devolving taxes such as VAT, corporation and natural resource tax.

Submitting Institution

University of Glasgow

Unit of Assessment

Economics and Econometrics

Summary Impact Type

Economic

Research Subject Area(s)

Economics: Applied Economics
Studies In Human Society: Policy and Administration
Law and Legal Studies: Law

Enhancing public knowledge of the lives and homes of seventeenth century English households

Summary of the impact

This case study details the impact of research conducted by the Centre for Hearth Tax Research in the preservation and presentation of historical data. Through the process of research, public engagement, and digital publications, the Centre for Hearth Tax Research has substantially increased access to the hearth tax for the benefit of a wide range of public users. This accessibility has been achieved firstly by the conversion of complex fiscal data into new formats, and secondly by an outreach strategy directed at local history and record societies, genealogists and family historians, and those interested in historic buildings. This research has had a significant impact in the following three ways: (a) preserving fragile records for the benefit of future generations, (b) the enhancement of public service provision in national and local archives, and (c) by widening access to the hearth tax as a resource.

Submitting Institution

Roehampton University

Unit of Assessment

History

Summary Impact Type

Cultural

Research Subject Area(s)

Economics: Applied Economics
Studies In Human Society: Policy and Administration

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